Pharmaceuticals have become a necessary expense for almost all Americans. In fact, nearly 60% of Americans are taking prescription drugs and 80% are taking over-the-counter drugs. The number of nominal spending on medicines in the United States was $425 billion and is expected to increase to $574 billion in 2019. The stakes are high in the supply chain process of pharmaceuticals, so it’s essential that you choose the right company for your logistics. Here are some tips to help you choose the best pharma logistics services for your organization.
When you’re searching for pharma logistics solutions, first you need to ask to see the logs that show temperature readings over time for that logistics company. Then, ask how reefer trailers are monitored. At the very least, they should carry digital thermostats that are easily visible to the driver. Finally, make sure there’s a backup plan. If the cooling or heating system goes down, how will the company maintain the right temperature in each zone until it gets repaired?
Inventory management and stock rotation
Then next thing you should do when looking for a pharmaceutical logistics company is asking how many of their customers require picking by FIFO, FEFO, and other principles. Call come of their customers and ask how well the company meets their criteria for picking. Then, ask to see sample orders that demonstrate how the WMS tracks particular code dates or other indicators.
Another important thing to ask a pharmaceuticals transportation company about is cost reduction. Investigate the WMS; a full-featured system does a better job of managing productivity. ASk what investments the company has made to lower energy costs, and ask how the company measures labor productivity. If there’s no metric in place, that’s not a great sign.
Regulatory requirements are also important when it comes to pharma logistics services. Ask the company for verification and compliance with government agencies like the FDA, Department of Public Health, and AIB certification. Establish needed records as well. As pharmaceuticals are highly regulated, make sure the pharma logistics services can be compliant with all the necessary paperwork and labeling.
Finally, ask about the company’s experience. You can tour the warehouse and see if everything is well maintained or if it needs serious attention. You can also ask to see sample reports that demonstrate the power and flexibility to the WMS and other IT systems.
According to Satish Jindel, president of SJ Consulting Group, length of haul has decreased an average of 4% from 2011 to 2016. The length of haul, experience, regulations, temperature integrity, and more, all can help you choose the right company for your pharma logistics services needs.